Panic meat buying emptied shelves and drove the Choice beef cutouts nearly $48 per cwt. higher. Cash fed cattle were higher, but not at a proportionate level.
Fed cattle traded steady to $1 higher, supported by gains in CME futures. Feeder cattle were steady to $4 higher.
It was another ugly week for cattle feeders.
Feeder cattle and calves continued their fall rally in October, gaining 3% to 5% at auctions. Prices at the beginning of November are nearly 9% higher for both calves and yearlings than the August averages.
Beef packer margins jumped into the black last week while cattle feeders saw their margins improve $88 per head, according to the Sterling Beef Profit Tracker.
Meaningful change isn’t accomplished overnight. More often, it happens slowly by chipping away piece by piece until something new suddenly takes shape.
Feeder cattle close down sharply and lean hog contracts finish lower.